I think more than anything else, the damage was caused by lack of communication and guidance in the early stages. It wasn’t really Dubai government that advised these “now-disgruntled” investors to advance without doing their research. Many people just went in craving for quick and huge profits … majority of them were not serious investors. Number of sales grew at a phenomenal rate and nobody saw it coming, therefore the damage was done even before corrective measures were implemented.

Slowly but steadily, RERA is now working on damage control. Dubai real estate court is just one of those steps …

I think more than anything else, the damage was caused by lack of communication and guidance in the early stages. It wasn’t really Dubai government that advised these “now-disgruntled” investors to advance without doing their research. Many people just went in craving for quick and huge profits … majority of them were not serious investors. Number of sales grew at a phenomenal rate and nobody saw it coming, therefore the damage was done even before corrective measures were implemented. Slowly but steadily, RERA is now working on damage control. Dubai real estate court is just one of those steps …

I agree with Sadi, I had few issues with two developers demanding payments while work has stopped or going at a very slow pace. I took my contracts to RERA, and their legal department were helpful, asked me not to make anymore payments. RERA also provided me with a written statement to give to the developer, and when i did both developers stopped demanding for unjustified payments, since work on both projects was behind schedulel.

I agree with Sadi, I had few issues with two developers demanding payments while work has stopped or going at a very slow pace. I took my contracts to RERA, and their legal department were helpful, asked me not to make anymore payments. RERA also provided me with a written statement to give to the developer, and when i did both developers stopped demanding for unjustified payments, since work on both projects was behind schedulel.

i think the problem starts from the beginning where there was no rules that controls realestate...this was good opportunity for developers to simply take over and put there rules that Guarantees there rights first. the government is working on it and they will solve the problems in market but in a slow procedure since they have thousands and thousands of complains against developers and definitely its not that easy to fix and its a great challenge for them. things will improve but in the long run...investors have great opportunities now for the ready properties not necesserly dubai...Sharjah on the other hand have better options and flexable prices and its a freehold for Arabs.

i think the problem starts from the beginning where there was no rules that controls realestate...this was good opportunity for developers to simply take over and put there rules that Guarantees there rights first. the government is working on it and they will solve the problems in market but in a slow procedure since they have thousands and thousands of complains against developers and definitely its not that easy to fix and its a great challenge for them. things will improve but in the long run...investors have great opportunities now for the ready properties not necesserly dubai...Sharjah on the other hand have better options and flexable prices and its a freehold for Arabs.

I don’t believe there is a simple solution for investors to put pressure on developers primarily because:

1) There are no tried and tested property laws in Dubai which means no one (developer, investor or lawyer) can be confident of the outcome. This deters any party from embarking on costly legal action and any investor getting reliable legal advice.
2) RERA are obviously overwhelmed and under resourced and again are learning as they go along. This will make the process slow as anyone who has dealt with them can testify!
3) The Royal Family has a vested interest and at the end of the day is ‘all powerful’. Therefore, it is unlikely that any action will be taken that is not in their interest. Nakheel, for example is effectively owned by the Royal Family.
4) Some of the developers have committed fraud, either intentionally at the outset of the project or as a consequence (i.e. running out of cash) of the ‘downturn’. Others are in varying degrees of financial trouble due to over expansion in the good old days. Therefore, different developments and different developers have different problems and different resources with which to solve them.
5) Investors also have different agendas depending on their own financial circumstances and the developments in which they have invested.
6) There are on line forums (e.g. http://groups.google.com/group/dubai-property-investors?hl=en ) where investors in the same development try to exert group pressure on the common developer. Assuming the developer has the resources to provide a solution then clearly this is an effective method. However, in my experience, it is very difficult to firstly find enough other investors in the same development and secondly, to get them to take collective action. I assume many investors are unwilling to declare their investment because of either tax or money laundering issues.

However, the chances of a relatively quick recovery of the Dubai property market are good for the following reasons:

1) They have no Plan B. In other words, the ‘powers that be’ have bet the shop on a strategy underpinned by a healthy property market so they have to make it work because they have no alternative.
2) Abu Dhabi has the money and will always bail out Dubai because they realize that to the outside World the UAE is all one entity and if Dubai gets a bad name Abu Dhabi will also suffer.
3) The fact that many construction projects are being scrapped will help market forces restore the balance between demand and supply.

Unfortunately, the recovery process will be painful and a lot of people (developers and investors) will lose money but then a lot of them spent it on ‘blind bets’ and not too much due diligence!

I don’t believe there is a simple solution for investors to put pressure on developers primarily because: 1) There are no tried and tested property laws in Dubai which means no one (developer, investor or lawyer) can be confident of the outcome. This deters any party from embarking on costly legal action and any investor getting reliable legal advice. 2) RERA are obviously overwhelmed and under resourced and again are learning as they go along. This will make the process slow as anyone who has dealt with them can testify! 3) The Royal Family has a vested interest and at the end of the day is ‘all powerful’. Therefore, it is unlikely that any action will be taken that is not in their interest. Nakheel, for example is effectively owned by the Royal Family. 4) Some of the developers have committed fraud, either intentionally at the outset of the project or as a consequence (i.e. running out of cash) of the ‘downturn’. Others are in varying degrees of financial trouble due to over expansion in the good old days. Therefore, different developments and different developers have different problems and different resources with which to solve them. 5) Investors also have different agendas depending on their own financial circumstances and the developments in which they have invested. 6) There are on line forums (e.g. http://groups.google.com/group/dubai-property-investors?hl=en ) where investors in the same development try to exert group pressure on the common developer. Assuming the developer has the resources to provide a solution then clearly this is an effective method. However, in my experience, it is very difficult to firstly find enough other investors in the same development and secondly, to get them to take collective action. I assume many investors are unwilling to declare their investment because of either tax or money laundering issues. However, the chances of a relatively quick recovery of the Dubai property market are good for the following reasons: 1) They have no Plan B. In other words, the ‘powers that be’ have bet the shop on a strategy underpinned by a healthy property market so they have to make it work because they have no alternative. 2) Abu Dhabi has the money and will always bail out Dubai because they realize that to the outside World the UAE is all one entity and if Dubai gets a bad name Abu Dhabi will also suffer. 3) The fact that many construction projects are being scrapped will help market forces restore the balance between demand and supply. Unfortunately, the recovery process will be painful and a lot of people (developers and investors) will lose money but then a lot of them spent it on ‘blind bets’ and not too much due diligence!

Agreed 100% - Dubai Govt. needs to focus on investor trust NOW, not later.... if their courts and regulatory authorities like RERA don't protect our hard earned money like they said they would, we'll never invest here again. I've heard of stories where people have gone to RERA and dubai courts trying to understand the process to file complaints or get money out of their ESCROW accounts, but no one working there is aware of the process! It s a sad state of affairs, where investors are forced to hire lawyers to seek results.

There is lack of accountability and visibility. Escrows were establish to protect our investment cash, not to be used for any other reason than the project's construction.... and RERA *watches* over it. There are cases where developers have committed Escrow fraud, right under their watch, and in some cases fled the country!

As an investor that gives me "0" confidence.. and when the word starts to get out to the rest of the world via media, it won't be good for attracting foreign investment.

Therefore RERA needs to become proactive, communicate and open up some kind of hotline where they can talk to investors, lawyers, whoever to answer questions and post information / answer questions that can get us feeling better about developers and their delays. I must be assured that my money is safe in their hands. That's it!

Agreed 100% - Dubai Govt. needs to focus on investor trust NOW, not later.... if their courts and regulatory authorities like RERA don't protect our hard earned money like they said they would, we'll never invest here again. I've heard of stories where people have gone to RERA and dubai courts trying to understand the process to file complaints or get money out of their ESCROW accounts, but no one working there is aware of the process! It s a sad state of affairs, where investors are forced to hire lawyers to seek results. There is lack of accountability and visibility. Escrows were establish to protect our investment cash, not to be used for any other reason than the project's construction.... and RERA *watches* over it. There are cases where developers have committed Escrow fraud, right under their watch, and in some cases fled the country! As an investor that gives me "0" confidence.. and when the word starts to get out to the rest of the world via media, it won't be good for attracting foreign investment. Therefore RERA needs to become proactive, communicate and open up some kind of hotline where they can talk to investors, lawyers, whoever to answer questions and post information / answer questions that can get us feeling better about developers and their delays. I must be assured that my money is safe in their hands. That's it!

I think it also depends on your developer. In my experience the developer i am dealing with is quite open to phone calls, emails and comms. and is also quite open for flexibility around payments. No one predicted the recession its not only Dubai its the same around the world, and as for off plan property around the world i'd say dubai is probably safer than Cayman Islands, Mexico, Malaysia, Spain, Panama

All these places are always in the news that they have been defrauded

Where as dubai is in the news because developers have delayed their projects, they haven't run away.

I think it also depends on your developer. In my experience the developer i am dealing with is quite open to phone calls, emails and comms. and is also quite open for flexibility around payments. No one predicted the recession its not only Dubai its the same around the world, and as for off plan property around the world i'd say dubai is probably safer than Cayman Islands, Mexico, Malaysia, Spain, Panama All these places are always in the news that they have been defrauded Where as dubai is in the news because developers have delayed their projects, they haven't run away.

According to the survey from Dubai real estate market also exposes that eighty percent investors believe that developers do not have concern of property owners at heart when managing their residential properties.

It proves that more and more property owners are challenging developers over issues like maintenance costs and etc…

According to the survey from Dubai real estate market also exposes that eighty percent investors believe that developers do not have concern of property owners at heart when managing their residential properties. It proves that more and more property owners are challenging developers over issues like maintenance costs and etc…

Some of us didn't buy in to the Dubai market to make a killing. We bought in to the dream which we were being sold. Past experience had told me to stick with well known developers and research previous builds.

We have still been very badly let down. Lack of communication which has been the biggest issue as well as ruthless tactics to repossess or disallow investors from reselling whilst they discuss their options, simultaneously stopping their customers having any options or redress. This from the governments own developer. No wonder Dubai is having trouble attracting new investments.

It is easier to look after the customers that you have got, than to find new ones!

Some of us didn't buy in to the Dubai market to make a killing. We bought in to the dream which we were being sold. Past experience had told me to stick with well known developers and research previous builds. We have still been very badly let down. Lack of communication which has been the biggest issue as well as ruthless tactics to repossess or disallow investors from reselling whilst they discuss their options, simultaneously stopping their customers having any options or redress. This from the governments own developer. No wonder Dubai is having trouble attracting new investments. It is easier to look after the customers that you have got, than to find new ones!

Dubai has suffered from the economic crisis as the whole world has, however, even before the crisis, people were saying "the bubble will burst sooner or later" as prices were sky rocketing too fast and off-plan properties were flipped several times at huge premiums in many cases. When the crisis came, Dubai property market suffered a double blow!

However, as a market analyst, I can confidently say that we have seen the bottom of the recession (and the property market) worldwide, the only way is up from here - but at a much slower pace. The investors remaining in the Dubai property market are the ones who actually want to use their investments as their homes or to rent out not to sell before being built. This, in the long run will have a positive impact on the economy as a whole.

The developers on the other hand have been hurt by the crisis too, its not just investors. They cannot build if investors do not pay. Banks are still not lending and if they are it is at very high interest rates. Investors need answers, but unfortunately, many developers' customer service is appauling to say the least! Lack of communication frightens investors making the whole situation a 'catch 22'!

RERA in Dubai and ARRA in Ajman, in my opinion are doing the best they can in these circumstances. There has only been very few cases were the developer has run away with investors money. Of course, many projects are delayed, but nevertheless, will be completed. Even in good times, nearly 90% of projects were delayed most of which by around a year.

Dubai will be back stronger than ever with a more solid foundation, but in the meantime Developers need to start communicating with their investors on a regular basis. New investors will also be back, but mainly for completed projects. The off-plan market will be dead for at least another 3 years. This will be good for Dubai as the demand will catch up with the supply.

Dubai has suffered from the economic crisis as the whole world has, however, even before the crisis, people were saying "the bubble will burst sooner or later" as prices were sky rocketing too fast and off-plan properties were flipped several times at huge premiums in many cases. When the crisis came, Dubai property market suffered a double blow! However, as a market analyst, I can confidently say that we have seen the bottom of the recession (and the property market) worldwide, the only way is up from here - but at a much slower pace. The investors remaining in the Dubai property market are the ones who actually want to use their investments as their homes or to rent out not to sell before being built. This, in the long run will have a positive impact on the economy as a whole. The developers on the other hand have been hurt by the crisis too, its not just investors. They cannot build if investors do not pay. Banks are still not lending and if they are it is at very high interest rates. Investors need answers, but unfortunately, many developers' customer service is appauling to say the least! Lack of communication frightens investors making the whole situation a 'catch 22'! RERA in Dubai and ARRA in Ajman, in my opinion are doing the best they can in these circumstances. There has only been very few cases were the developer has run away with investors money. Of course, many projects are delayed, but nevertheless, will be completed. Even in good times, nearly 90% of projects were delayed most of which by around a year. Dubai will be back stronger than ever with a more solid foundation, but in the meantime Developers need to start communicating with their investors on a regular basis. New investors will also be back, but mainly for completed projects. The off-plan market will be dead for at least another 3 years. This will be good for Dubai as the demand will catch up with the supply.